I don't Buy into Inflation !
The Bureau of Labor Statistics accounts for the costs of
home ownership by assuming that homeowners rent their
houses from themselves at current market rates, even
though few homeowners ever consider themselves to be
doing so. In recent years, rents have leaped as new
households have rented and not bought their abodes, as
discussed earlier.
This has pushed up rent costs, and in June compared to a
year earlier, this Owner’s Equivalent Rent number jumped
3.2% (Chart 30). Excluding it, the CPI rose not the reported
1.6% but a mere 0.9% year over year. Nevertheless, the
fictitious Owner’s Equivalent Rent component is likely to
grow much slower in the future.
A Gary Shilling INSIGHT August
Everything is going to get cheaper & cheaper because Technological advance say so.
Look at Agriculture Commodities Index
Long Treasuries is advised
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